"2% Discount on Auto Insurance Premiums for Participating in Five-Day Vehicle Rotation System"... Retroactive from This Month

Democratic Party’s Special Committee on Middle East War Holds Meeting on the 27th

Special Insurance Rider Launched... 17 Million Vehicles to Benefit

A special insurance rider will be launched that provides an annual 2% discount on auto insurance premiums for vehicle owners who participate in the five-day vehicle rotation system. The benefit will be retroactively applied from April 1.

Yoo Dongsu, a Democratic Party lawmaker and chairman of the Special Committee on Economic Response to the Middle East War, stated at the National Assembly Members' Office Building on the 27th, "I hope this discount will encourage the public to participate in energy-saving measures," adding, "The non-life insurance industry developed this product even at the cost of a deficit, despite facing difficult circumstances."

Yoo Dongsoo, a member of the Democratic Party and Chair of the Special Committee for Economic Response to the Middle East War, is delivering a greeting at the 4th meeting of the committee held at the National Assembly Members' Office Building on the 27th. Photo by Yonhap News Agency

The eligible subscribers for this special rider are individual auto insurance policyholders, and approximately 17 million vehicle owners are expected to benefit. The offer does not apply to business-use or commercial vehicles, electric vehicles, or high-priced vehicles with a value of 50 million won or more.

The discount rate is uniformly set at 2% per year across all insurance companies. For example, if a subscriber pays 700,000 won in auto insurance premiums this month and maintains the rider for one year, they will be refunded 14,000 won in April next year. Even if a customer enrolls in the rider next month, the premium discount will be retroactively applied from April 1.

A verification process for driving records will also be introduced to confirm whether the vehicle owner has complied with the five-day vehicle rotation system. Each insurance company plans to use driving record applications and similar tools to monitor compliance. If an accident occurs while driving on a restricted day under the rotation system, the insurance payout will be provided as usual, but the discount benefit from the rider will not be applied.

Lee Byoungrae, Chairman of the General Insurance Association, explained, "Although efforts are needed to reduce losses, such as last year’s 700 billion won deficit in auto insurance, this decision was made in the spirit of the greater good amid the crisis caused by the war," adding, "Some may point out that the 14,000 won discount per person is small, but the deficit situation and sustainability of auto insurance must also be considered."

This content was produced with the assistance of AI translation services.